AMP staff are bracing for job losses across two divisions as the wealth giant pursues a cost-cutting exercise while it looks to sell off parts of the business in what has been a turbulent year for the company.
AMP confirmed there will be redundancies in its investment and banking divisions – AMP Capital and AMP Australia – to avoid duplicate roles across human resources and legal services. An AMP spokesman said it had made changes to "centralise some business services".
AMP staff brace for job cuts across the company. Credit:Getty
"Our focus is on continuing to reshape the organisation to drive efficiency and support the delivery of AMP’s strategy to become a simpler, client-led organisation," he said.
AMP's has taken the knife to its financial planning network, and chief executive Francesco De Ferrari said this segment of the business could shrink by about 30 per cent. AMP's share price has continued to fall in September and Mr De Ferrari has previously stated the company had to make "tough decisions" to improve the value of the company.
AMP's money manager Boe Pahari continues to hold a senior leadership role in AMP Capital and the company has reached a stalemate with Maurice Blackburn lawyers over the release of an investigation report into Julia Szlakowski's sexual harassment complaint.
The news comes weeks after AMP announced it had appointed a team of consultants and lawyers to explore options to splinter the group after a spike in interest from third parties keen to buy its assets.
Tribeca Investments portfolio manager Jun-Bei Liu said AMP was right to take steps to stabilise costs as it faces earnings pressure, in what has been a "very tough year" for the company.
"With an anticipated fall in its earnings, they have to make the redundancies, they have to do something to at least to stabilise the business," she said. "The first thing within their control is to control the costs."
Ms Liu said the sexual harassment scandal that resulted in the resignation of chairman David Murray and director John Fraser had spooked investors.
"Their most profitable asset is AMP Capital, and with the events that have taken place in the last six to 12 months, a lot of investors will be cautious with their allocation using them as the manager," she said. "The issues seem to be ongoing and there's no resolution."
Financial Services Union secretary Nathan Rees said the union had not been consulted about the broader restructures and said it was seeking further information from AMP management.
"AMP has been a mainstay of corporate Australia for many many years," Mr Rees said. "To now be throwing employees onto a scrap heap during COVID-19 and a declining economy is extremely poor form and shows a lack of regard for longstanding employees that have done nothing wrong apart from performing their very best at their job every day."
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